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Boeing Wins $23B Air Force Deal to Deliver F-15EX Aircraft
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The Boeing Company (BA - Free Report) recently won a contract worth $22.9 billion involving the F-15EX aircraft. The deal has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson AFB, OH.
Per the terms, the jet giant will provide design, development, integration, manufacturing, test, verification, certification, delivery, sustainment and modification of F-15EX aircraft. Work related to the deal will be executed in St. Louis, MO; and Eglin Air Force Base, FL. It is projected to get completed by Dec. 31, 2023.
Rising Demand for Military Jets
With rising security threats across the globe, emerging economies like Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. On the other hand, developed nations like the United States and Europe have already been leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, forms an integral part of a country’s defense products. Notably, emerging trends in the combat aircraft space like advent of fifth-generation technology aircraft, advanced composite materials, and stealth technology have been driving demand substantially.
What’s Favoring Boeing?
The global military market continues to expand, with North America leading its growth. Notably, in support of the National Defense Strategy, the U.S. Air Force must purchase 72 combat jets each year.
Being the United States’ largest jet maker, Boeing thus enjoys a smooth flow of contracts for military jets and its associated upgrades. The latest contract win is an example ofthe same. Notably, its next-generation F-15EX aircraft offers advanced maneuverability, acceleration, durability, computing power and weapons carriage than the earlier versions. It requires no new logistics chains, training squadrons, infrastructure modifications, program offices or even weapons integration. This has made this aircraft a cost-effective choice for the U.S. Air force.
Prospects of Other Jet Manufacturers
Per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.08% to reach a value of $58.03 billion by 2026 from 2018. Since North America continues to dominate this market, jet makers in this nation like Boeing, Lockheed Martin (LMT - Free Report) , General Dynamics (GD - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows for their combat-proven aircraft.
Price Performance
In a year’s time, shares of Boeing have plunged 51.4% compared with the industry’s decline of 32.5%.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Boeing Wins $23B Air Force Deal to Deliver F-15EX Aircraft
The Boeing Company (BA - Free Report) recently won a contract worth $22.9 billion involving the F-15EX aircraft. The deal has been awarded by the Air Force Life Cycle Management Center, Wright-Patterson AFB, OH.
Per the terms, the jet giant will provide design, development, integration, manufacturing, test, verification, certification, delivery, sustainment and modification of F-15EX aircraft. Work related to the deal will be executed in St. Louis, MO; and Eglin Air Force Base, FL. It is projected to get completed by Dec. 31, 2023.
Rising Demand for Military Jets
With rising security threats across the globe, emerging economies like Asia Pacific, the Middle East and South America are spending rapidly to enhance their defense arsenals. On the other hand, developed nations like the United States and Europe have already been leading the defense market.
It is imperative to mention in this context that military aircraft, both manned and unmanned, forms an integral part of a country’s defense products. Notably, emerging trends in the combat aircraft space like advent of fifth-generation technology aircraft, advanced composite materials, and stealth technology have been driving demand substantially.
What’s Favoring Boeing?
The global military market continues to expand, with North America leading its growth. Notably, in support of the National Defense Strategy, the U.S. Air Force must purchase 72 combat jets each year.
Being the United States’ largest jet maker, Boeing thus enjoys a smooth flow of contracts for military jets and its associated upgrades. The latest contract win is an example ofthe same. Notably, its next-generation F-15EX aircraft offers advanced maneuverability, acceleration, durability, computing power and weapons carriage than the earlier versions. It requires no new logistics chains, training squadrons, infrastructure modifications, program offices or even weapons integration. This has made this aircraft a cost-effective choice for the U.S. Air force.
Prospects of Other Jet Manufacturers
Per a report by Fortune Business Insights, the global military aircraft market is expected to witness a CAGR of 3.08% to reach a value of $58.03 billion by 2026 from 2018. Since North America continues to dominate this market, jet makers in this nation like Boeing, Lockheed Martin (LMT - Free Report) , General Dynamics (GD - Free Report) and Northrop Grumman (NOC - Free Report) are expected to benefit in terms of steady order flows for their combat-proven aircraft.
Price Performance
In a year’s time, shares of Boeing have plunged 51.4% compared with the industry’s decline of 32.5%.
Zacks Rank
Boeing currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>